Market is likely to move up

Mumbai, May 21: Overnight trading was influenced by Atlanta Fed President Bostic's comments on higher future US interest rates, possibly akin to 1990s levels, and a single rate cut in 2024. Vice Chair Barr echoed this, advocating steady rates amid disappointing Q1 CPI data.

“Bolstered by pre-election rallies and a technically strong outlook above key EMAs Today's focus includes Q4 results from several major companies and the upcoming FOMC Minutes on May 22,” says Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd. Recommended trades are buying AUROBINDO PHARMA (CMP 1202).

In the past week, benchmark indices rallied sharply, with the Sensex was up over 1300 points. Among sectors, almost all major sector indices witnessed buying at lower levels, but Realty and Metal indices outperformed, with Realty up 7.29 percent and Media up 6.99 percent. During the week, the market rallied sharply after it took support near 71,900 after last Monday's intraday selloff.

Technically, on weekly charts, it has formed a long bullish candle and is currently comfortably trading above the 50-day and 20-day SMA (Simple Moving Average), which is positive.

“We believe that as long as the market is trading above 73,300 the bullish sentiment is likely to continue and the market is likely to move up to 74200-74500 On the other hand, sentiment may change below 73,300,” says Shrikant Chouhan – Head Equity Research Kotak Securities.

Below that, the market may slip or 73,000 or 72,700. Crossing the level of 75,150 could be a big positive.